UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


LAW  LIBRARY 


>NSIN   FREE  LIBRARY  COMMISSION 
JUSLATIVE   REFERENCE   DEPARTMENT 
tPARATiVE  LEGISLATION  BULLETIN 

No  7' 


MARGARET  A.  SCHAFFNER 


MADISON  WISCONSIN 
JUNE,  1906 


1XTRODUCTI* 

This  bulletin  is  designed  to  meet  the  demand  of  leg- 
islators and  business  men  for  a  condensed  stater 
of  the  laws  relating  to  the  taxation  of  trust  compm 

When  they  are  taxed  like  banks  only  a  brief  refer- 
ence is  given  to  the  banking  laws. 

This  paper  does  not  include  any  statement  of  or- 
ganization or  examination  fees. 

Chi  .IJTHY. 

Legisfai  •'•hnfnf. 


TAXATION  OF  TRUST  COM- 
PANIES 


MARGARET  A.  SCHAFFNER 


COMPARATIVE    LEGISLATION    BULLETIN  —  NO  7  — JUNE,   1906 
Prepared  with  the  co-operation  of  the  Political  Science  De- 
partment of  the  University  of  Wisconsin 


WISCONSIN  PBEE  LIBRARY  COMMISSION 

LEGISLATIVE  REFERENCE  DEP'T 

MADISON  Wis 

1906 


CONTENTS. 


I'Al.K. 

THE  BA9IS  OF  TAXATION 5 

Taxe.<  Based  upon  the  Nature  of  the  Property 5 

Volume  of  Business 5 

Amount  of  corporate  investment 5 

General  deposits t> 

Property  held  in  trust 7 

Annual  earnings  •. 7 

Grc.s.s  earnings 7 

Gross  amount  of  premiums 7 

Net  income 8 

Kinds  of  Property 8 

Tangible  assets 8 

Franchises 8 

Taxes  Based     upon  the  Nature      of  the  Corporation 9 

General  corporation  taxation  9 

Bank  taxation 9 

Trust  company  taxation 9 

LAWS 10 

Foreign  countries 10 

.   United  States  10 


4. 

REFERENCES 


ADAMS,  HENRY  CARTER,  Science  of  finance:  an  investigation 
of  public  expenditures  and  public  revenues.  N.  Y.,  1899. 
(American  science  series.) 

For  a  scientific  classification  of  taxes,  see  book  2,  ch.  3.  Also  see 
book  2,  ch.  5  (p.  463),  for  a  discussion  of  bank  and  trust  company 
taxation. 

AMERICAN  BANKERS'  ASSOCIATION — Trust  company  section. 
Proceedings  of  the  annual  meetings,  1896-1903.  New 
York,  1904. 

Includes  papers  and  discussions  bearing  on  trust  companies  by 
bankers  and  trust  company  officials. 

AUDIT  COMPANY  OF  NEW  YORK,  Comp.  Trust  companies  of 
the  United  States.  New  York,  1904. 

Published  by  the  United  States  Mortgage  and  Trust  Company. 
Gives  statements  of  the  condition  of  trust  companies  in  the  United 
States . 

CATOR,  GEORGE.  Trust  companies  in  the  United  States. 
Baltimore,  1902.  Johns  Hopkins  University.  Studies  in 
historical  and  political  science,  ser.  20,  nos.  5-6. 

Gives  tabular  statement  of  taxation  of  banks  and  trust  companies 
in  the  several  states  and  territories  in  1901,  p.  101-4. 

ELY,  RICHARD  THEODORE.  Taxation  in  American  states  and 
cities.  New  York,  1888. 

For  a  valuable  summary  of  state  constitutional  provisions  on  taxa- 
tion, see  tabular  statement  facing  p.  396. 

HERRICK,  CLAY.     Trust      companies:      their      organization, 
growth    and    management.      Bankers'    Magazine,   Jan.- 
Oct.,  1904.     vols.  68-69. 
A  series  of  articles  appearing  each  month. 

KIRKBRIDE,  FRANKLIN  B.  and  STERRETT,  J.  E.  Modern 
trust  company:  its  functions  and  organization.  New 
York,  1905. 

One  of  the  best  texts  on  trust  companies.  Includes  bibliography, 
p.  291-95. 


4  THE  BASIS  OF  TAXATION 

NKSBITT,  ROBERT  C.  Trust  companies.  Law  society,  Lon- 
don. Proceedings  of  the  29th  provincial  meeting,  1903, 
p.  234-64. 

A  description  of  the  trustee  companies  of  Australia,  Public  trust 
office  of  New  Zealand,  and  the  position  of  English  companies  or  in- 
dividuals aualagous  to  these. 

RIDGBLEY,  WILLIAM  BARRET.     Government  control  of  banks 
and  trust  companies.    Annals  of  the  American  academy, 
July,  1904.    vol  24,  p.  15-267. 
Discusses  briefly  the  growth  of  trust  companies. 

YOUNG,  G.  W.  and  COMPANY.  Digest  of  laws  relating  to 
trust  companies  of  the  United  States.  New  York, 
1905. 

A  convenient  compilation  giving  comtemporary  law  in  classified 
form. 


THE  BASIS  OF  TAXATION 


Existing  laws  for  the  taxation  of  trust  companies, 
vary  greatly  for  the  several  states. 

TAXES  BASED  UPON  THE  NATURE  OF  THE  PROP- 
ERTY 

The  different  taxes  employed  may  be  grouped  ac- 
cording to  the  nature  of  the  property  right,1  which 
is  taken  as  the  basis  of  assessment.  On  this  basis 
taxes  are  levied  upon :  i .  the  volume  of  business ;  2. 
annual  earnings ;  3.  special  kinds  of  property. 

VOLUME    OF    BUSINESS 

Taxes  based  upon  the  volume  of  business  are  lev- 
ied upon:  i.  the  amount  of  corporate  investment;  2. 
general  deposits;  3.  property  held  in  trust. 

Amount  of  corporate  investment 

A  number  of  states2  tax  trust  companies  upon  the 
amount  of  the  corporate  investment  including  capital 
stock,  surplus,  and  undivided  profits. 


iThe  following:  statement  of  trust  company  taxation  aims  to  analyze 
and  classify  the  taxes  which  exist  under  contemporary  law,  it  does  not 
aim  to  *ive  a  complete  classification  of  possible  taxes. 

2  See  states  in  alphabetic  order  under  I.au'». 


6  THE  BASIS  OF  TAXATION 

Capital  stock.  Taxation  based  upon  the  amount  of 
capital  stock  is  commonly  found  in  our  older  states. 

For  typical  cases  see  laws  of:  Conn.,  Md.,  Mass.,  Mich.,  N. 
H.,  N.  JM  N.  Y.,  R.  I. 

The  tax  on  capital  stock  is  assessed  either  to  the 
company  on  the  aggregate  value  of  the  shares,  or  to 
the  owners  of  the  separate  shares. 

Assessed  to  company.  The  law  of  N.  Y.  presents  a  typi- 
-cal  case  of  assessment  to  the  company. 

Assessed  to  owner.  The  assessment  of  separate  shares  to 
the  owners  is  illustrated  in  the  laws  of  Mich,  and  R.  I. 

Surplus.     Certain   states   also  tax  surplus. 
Compare  the  laws  of  N.  J.  and  N.  Y. 

Undivided  profits.     Others   also   include  undivided 
profits. 
For  a  plaiu  statement  of  law  on  this  point,  see  N.  Y. 

Special  provisions  for  real  estate.  Since  it  is  gen- 
erally desirable  to  assess  real  estate  separately  for 
local  purposes,  a  majority  of  the  states  have  made 
provision  for  deducting  the  assessed  value  of  the  real 
property  from  the  aggregate  valuation  of  the  capital 
stock. 
For  typical  laws  compare:  Conn.,  Mich.,  N.  J.,  N.  Y.,  R.  I. 

General  deposits 

A  tax  upon  the  deposits  of  trust  companies  is  im- 
posed in  a  number  of  states. 

Aggregate  deposits.  For  a  tax  upon  aggregate  geneial 
deposits,  see  thf  laws  of  R.  I.  Also  compare  the  laws  of  Vt. 
which  place  a  tax  upon  the  average  amount  of  deposits  after 
providing  for  certain  deductions. 


THE  BASIS  OF  TAXATION  7 

Deposits  upon  interest.  Typical  illustrations  of  the  tax- 
ation of  deposits  upon  interest  are  found  in  the  laws  of  Mass, 
and  of  N.  H. 

Property  held  in  trust 

Tax  provisions  relating  to  property  held  in  trust, 
generally  require  trust  companies  to  give  a  detailed 
report  of  all  securities  and  investments  held  by  them 
in  order  to  subject  such  property  to  taxation. 

For  typical  provisions,  see  the  laws  of  Mass,  taxing  personal 
property  held  in  trust.  Also  compare  the  laws  of  Md.  and  of 
Vt.  for  illustrations  of  the  taxation  of  securities  and  invest- 
ments. 

ANNUAL   EARNINGS 

Taxes  based  upon  the  earnings  of  trust  companies 
have  not  been  as  generally  employed  as  those  based 
upon  volume  of  business.  However,  existing  taxes 
levied  according  to  earnings  are  placed  upon-.  I. 
gross  earnings;  2.  gross  amount  of  premiums;  3. 
net  income. 

Gross  earnings 

Recent  legislation  has  placed  a  tax  upon  gross  earn- 
ings in  several  states. 

Compare  the  laws  of  the  Dist.  of  Columbia  for  a  \yz  per 
cent,  tax  on  gross  earnings  and  the  laws  of  Md.  for  a  2^  per 
cent,  tax  on  gross  receipts. 

Gross  amount  of  premiums 

Another  method  of  reaching  earnings  is  found  in 
the  tax  on  the  gross  amount  of  premiums. 

For  typical  cases  compare  the  laws  of  Mich,  and  of  Ga. 


8  THE  BASIS  OF  TAXATION 

Net  income 

Taxes  based  upon  the  net  income  of  trust  com- 
panies are  sometimes  employed  to  supplement  other 
taxation. 

The  Wis.  law  as  amended  in  1905,  c.  442  illustrates  this 
method. 

SPECIAL    KINDS   OF    PROPERTY 

In  certain  cases,  taxes  are  levied  upon  the  kinds  of 
property  held  by  trust  companies  without  any  refer- 
ence to  the  volume  of  their  business  or  the  amount 
of  their  annual  earnings.  From  this  standpoint, 
taxes  may  be  roughly  grouped  according  as  they  are 
levied  upon:  i.  tangible  assets;  2.  franchises. 

Tangible  assets 

The  method  of  taxing  trust  companies  upon  their 
tangible  assets  exclusively  has  been  quite  generally 
supplemented  in  order  to  secure  an  adequate  basis  of 
assessment. 

A  typical  case  of  taxation  upon  assets  is  found  in  Miss., 
Code,  1892,  sees.  3749-58. 

Franchises 

Right  to  do  business.  A  license  fee  for  the  privi- 
lege of  conducting  a  corporate  business  is  sometimes 
levied  in  a  lump  sum  without  any  attempt  at  definite 
valuation  of  the  property. 

See  the  laws  of  Wis.  for  a  typical  provision. 

Value  of  franchise.  The  value  of  the  corporate 
franchise  is  made  the  basis  of  assessment  in  a  number 
of  recent  laws. 

For  different  methods  of  estimating  the  value  of  the  fran- 
chise, see  the  laws  of  Mass,  and  of  N.  Y. 


THE  BASIS  OF  TAXATION  9 

TAXES  BASED  UPON  THE  NATURE  OF  THE  COR- 
PORATION 

The  assessment  of  trust  companies  as  corporate 
bodies  is  provided  for  under  the  following  systems : 
I.  general  corporation  taxation ;  2.  bank  taxation ;  3. 
trust  company  taxation. 

General  corporation  taxation 

The  general  provisions  for  the  taxation  of  corpora- 
tions apply  in  a  number  of  states. 

See  the  laws  of:  Minn.,  Miss.,  Nev.,  N.  D.,  Okla.,  Ore.,  Pa., 
S.  D. 

Bank  taxation 

In  more  than  half  of  our  states  taxation  is  the  same 
as  for  banks. 

''Compare  the  laws  of:  Ala.,  Ariz.',  Ark.,  Cal.,  Col.,  Del., 
Fla.,  Id.,  Ind.,  Kan.,  Ky.,  La.,  Me.,  Mo.,  Mont.,  Neb.,  N.  M., 
N.  C.,  Ohio,  S.  C.,  Tenn.,  Tex.,  Ut,  Va.,  Wash.,  W.  Va.,  Wy. 

Trust  company  taxation 

About  one  fourth  of  our  states  have  special  provi- 
sions for  the  taxation  of  trust  companies. 

For  leading  provisions  compare  the  laws  of:  Conn.,  D.  C., 
Md.,  Mass.,  Mich.,  N.  H.,  N.  J.,  N.  Y.,  R.  I.,  Vt.,  Wis. 


10  THE  BASIS  OF  TAXATION 


LAWS 


Foreign  countries 

No  important  laws  for  the  special  taxation  of  trust 
companies  have  been  developed  in  foreign  countries. 

United  States 

Alabama.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1901,  sees.  217,  255;  Code, 
1896,  sec.  3911,  subd.  8;  sec.  4122,  subd.  55;  Laws, 
1896-7,  no.  659,  sec.  36. 

Arizona.  Taxation  the  same  as  for  banks.  For 
tax  provision  see  Rev.  St.  1901,  sees.  3837-9. 

Arkansas.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Dig.  of  St.  1904,  sees.  6919-28. 

California.  Taxation  the  same  as  for  banks  other 
than  national.  For  tax  provisions  see  Const.  1879, 
art.  13,  sec.  I ;  Pol  Code,  1903,  sec.  3608;  Laws,  1905, 
c.  386. 

Colorado.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Ann.  St.  Supp.  1896,  sec.  3810- 
38100. 


THE  BASIS  OF  TAXATION  11 

Connecticut.  Gen.  St.  1902,  sec.  2328,  2331  as 
amended  by  Laws,  1903,  c.  204  and  by  Laws,  1905,  c. 
54.  The  state  tax  is  i%  of  the  market  value  of  the 
stock  less  the  local  tax  on  the  real  estate. 

Delaware.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Rev.  Code,  1893,  p.  54;  Laws, 
1897,  c.  381. 

District  of  Columbia.  Act  of  Cong.  Oct.  ist,  1890, 
U.  S.  St.  at  L.  vol.  2,6,  P.  629.  Real  estate  is  taxed 
locally.  There  is  also  a  il/2%  tax  on  gross  earnings, 
and  this  is  in  lieu  of  personal  taxes.  Shares  are  not 
taxed. 

Florida.  Taxation  the  same  as  for  banks.  For  tax 
provisions  see  Rev.  St.  1892,  sec.  336,  subd.  n. 

Georgia.  Tax  provisions  for  banks  apply:  see 
Const.  1877,  art.  7,  sec.  2;  Laws,  1898,  p.  78.  In  ad- 
dition there  is  a  i%  tax  on  all  premiums:  see  Laws, 

1900,  p.  28. 

Idaho.  Taxation  the  same  as  for  banks.  For  tax 
provisions  see  Const.  1889,  art.  7,  sec.  8;  Pol.  Code, 

1901,  sec.  1335. 

Illinois.  Trust  companies  organized  under  the 
general  incorporation  laws  are  taxed  the  same  as 
other  corporations  thus  organized.  For  tax  provi- 
sions see  Rev.  St.  1905,  c.  120,  sees,  i,  3,  4,  32-4. 

State  banks  complying  with  the  requirements  made 
of  trust  companies  as  to  the  deposit  of  securities  with 
the  state  are  authorized  to  accept  and  execute  trusts. 


12  THE  BASIS  OF  TAXATION 

When  such  deposit  has  been  made  the  bank  becomes 
a  trust  company  as  well  as  a  banking  company,  and 
such  companies  are  assessed  the  same  as  state  and 
national  banks.  For  provisions  see  Rev.  St.  19/35,  c. 
120,  sees.  13,  35-9. 

Indiana.  Taxation  the  same  as  for  banks.  For 
tax  provision  see  Const.  1851,  art.  10,  sec.  i ;  Ann.  St. 
1901,  sees.  8411,  8469-76;  Supp.  1905,  sees.  8421, 
8469-74. 

loiva.  Trust  companies  are  taxed  under  the  pro- 
visions for  the  taxation  of  banks  and  of  corporation 
stocks.  See  Const.  1857,  art.  8,  sec.  2,  annotations; 
Code,  1897,  sec.  1322  as  amended  by  Laws,  1906,  c. 
50;  Code,  sees.  1323-25,  1327. 

Kansas.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1859,  art.  n,  sec.  1-2;  Gen. 
St.  1905,  sees.  8276-8. 

Kentucky.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1891,  sec.  174;  St.  1903, 
sees.  4092-92^ 

Louisiana.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1898,  art.  228-9;  Rev-  Laws, 

1904,  sec.  307. 

Maine.  Taxation  the  same  as  for  banks.  For  tax 
provisions  see  Rev.  St.  1903,  c.  8,  sees.  64-8;  Laws, 

1905,  c.  172. 


THE  BASIS  OF  TAXATION  13 

Maryland.  Pub.  Gen.  Laws,  1904,  art.  81,  sec.  138 
as  amended  by  Laws,  1906,  c.  84;  art.  81,  sees.  148-60. 
Trust  companies  are  taxed  upon  their  capital  stock  for 
state,  county  and  municipal  purposes.  In  no  case  is 
the  aggregate  amount  of  stock-  to  be  valued  at  less 
than  the  full  value  of  the  real  estate  and  chattels,  real 
or  personal,  belonging  to  the  company. 

art.  81,  .sec.  22  as  amended  by  Laws,  1906,  c.  404, 
fixes  the  rate  of  taxation  on  capital  stock  for  state  pur- 
poses at  16^  per  $100. 

art.  81,  sec.  164,  as  amended  by  Laws  1906,  c.  712. 
An  additional  state  tax  of  2^/2%  is  levied  upon  the  an- 
nual gross  receipts  of  trust  companies.3 

Massachusetts.  Rev.  Laws,  1902.  c.  12.  sees.  2-4, 
15.  Real  estate  is  taxed  locally. 

c.  14.  sees.  35-6.  A  tax  is  placed  upon  all  personal 
property  held  upon  trust  which  would  be  liable  to  tax- 
ation if  held  by  any  other  trustee  residing  in  the  com- 
monwealth. A  tax  is  also  placed  upon  all  deposits 
held  upon  interest,  or  for  investment,  other  than  those 
held  in  trust  or  subject  to  withdrawal  upon  demand 
or  within  ten  days. 

sees.  37-40.  A  further  tax  is  placed  upon  the  cor- 
porate franchises  of  trust  companies.  The  value  of 
the  franchise  is  determined  as  follows :  the  tax  com- 
missioner is  required  to  ascertain  the  true  market 
value  of  the  shaies  of  capital  stock,  and  is  to  estimate 


8  See  Pub.  Gen.  Laws,  1901,  art.  81,  sec.  153  for  provisions  requiring  trust 
companies  to  give  a  detailed  report  to  the  state  tax  commissioners  of  all 
securities  and  investment?  held  by  them  in  trust  or  otherwise  in  order  to 
subject  such  securities  and  investments  to  state,  county,  and  municipal 
taxation. 


14  THE  BASIS  OF  TAXATION 

therefrom  the  fair  cash  value  which  is  to  be  taken  as 
the  true  value  of  the  corporate  franchise.  From  this 
amount  the  value  of  real  estate,  assessed  locally,  is  to 
be  deducted.  The  rate  of  taxation  is  determined  by 
making  an  apportionment  of  the  whole  amount  of 
money  to  be  raised  by  taxation  upon  property  in  the 
commonwealth. 

Michigan.  Comp.  Laws,  1897,  sec.  6168.  Real  es- 
tate is  taxed  locally.  The  residue  of  capital  is  taxed 
as  personal  property.  After  deduction  of  real  estate, 
shares  are  assessed  by  local  assessors  to  owner  at  res- 
idence. 

Laws,  1897,  c.  1 06.  In  addition  there  is  a  tax  of 
2%  of  gross  amount  of  all  premiums. 

Minnesota.  Tax  provisions  for  corporations  appty. 
See  const.  1857,  art.  9,  sec.  3;  Rev.  Laws,  1905,  sees. 
794,  797-8,  821,  838,  1685.  A!SO  see  Nelson  v.  St. 
Paul  T.  I.  &  T.  Co.  1896,  64  Minn.  101. 

Mississippi  Tax  provisions  for  corporations  apply. 
See  Const.  1890,  art.  7,  sec.  181  ;  Code,  1892,  sees. 
3749-58. 

Missouri.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1875,  art-  IO<  secs-  2»  2I >" 
Rev.  St.  1899,  secs.  5580,  9153. 

Montana.  Taxation  the  same  as  for  national  banks. 
For  tax  provisions  see  Const.  1889,  art.  12,  secs.  7,  17; 
Civ.  Code,  1895,  sec.  6n;  Pol.  Code,  1895,  secs. 
3691-4. 


THE  BASIS  OF  TAXATION  15 

Nebraska.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Const.  1875,  art.  9,  sec.  I ;  Ann.  St. 
1903,  sec.  10455. 

Nevada.  General  tax  provisions  for  corporations 
apply:  see  Comp.  Laws  1900,  sees.  1084-89.  In  ad- 
dition, a  license  tax  is  placed  upon  trust  companies  the 
same  as  for  banks:  see  sees.  1188,  1190. 

.  Nezv  Hampshire.  Pub.  St.  1901,  c.  65,  sec.  5.  The 
state  tax  is  ^4  of  i%  on  the  aggregate  general  de- 
posits drawing  interest  after  deducting  the  value  of 
all  the  real  estate  and  of  all  the  mortgage  loans  on  real 
estate  within  the  state  made  at  a  rate  not  exceeding 
5%.  In  addition  there  is  a  tax  of  i%  on  the  special 
deposits  and  capital  stock  after  deducting  the  value  of 
all  the  corporate  real  estate  not  already  deducted  from 
the  general  deposits.  Such  taxes  are  In  lieu  of  all 
other  taxes  against  the  corporation,  their  stock  holders 
and  their  depositors  on  account  of  their  interests 
therein; 

Nezv  Jersey.  Laws,  1903.  c.  208,  sec.  18.  Each 
trust  company  is  taxed  in  the  district  where  its  office 
is  located  upon  the  full  amount  of  capital  stock  paid 
in  and  accumulated  surplus ;  its  real  estate  is  taxed  in 
the  district  where  it  is  situated  and  this  assessment 
is  deducted  from  the  assessment  on  the  capital  stock. 
Otherwise  the  capital  stock,  property  and  franchise 
are  exempt  from  state  taxation. 

New  Mexico.  Taxation  the  same  as  for  banks. 
For  tax  provisions  see  Comp.  Laws  1897,  sees.  257-9, 
4025. 


16  THE  BASIS  OF  TAXATION 

New  York.  Laws,  1901,  c.  132  as  amended  by 
Laws,  1901,  c.  535.  Every  company  authorized  to  do 
a  trust  company  business  is  required  to  pay  an  annual 
franchise  tax  equal  to  I  %  on  the  amount  of  its  capital 
stock,  surplus,  and  undivided  profits. 

Laws,  1896,  c.  908,  as  amended  by  Laws,  1901,  c. 
132,  and  Laws,  1902,  c.  172.  A  stockholder  in  a 
trust  company  is  not  to  be  taxed  as  an  individual  for 
such  stock. 

Laws,  1896,  c.  908  as  amended  by  Laws,  1902  c. 
171.  Real  estate  is  taxed  locally. 

Laws,  1901,  c.  132  and  Laws,  1902,  c.  172,  pro- 
vide for  annual  reports  by  trust  companies  stating 
the  amount  of  capital  stock,  surplus,  and  undivided 
profits,  and  such  other  data  as  the  comptroller  may  re- 
quire. 

Laws,  1896,  c.  908,  as  amended  by  Laws,  1901,  c. 
118,  132,  and  558  make  provision  for  payment  of 
taxes  and  prescribes  penalties  for  failure  to  pay.4 

North  Carolina.  Taxation  the  same  as  for  banks. 
For  tax  provisions  see  Const.  1876,  art.  5,  sec.  3 ;  Re- 
visal,  1905,  sees.  5162,  5267-70.  Trust  companies 
not  doing  banking  business  are  taxed  under  the  gen- 
eral provisions  for  the  taxation  of  private  corpora- 
tions: see  Revisal,  1905.  sees.  5108,  5190. 

Xorth  Dakota.  General  tax  provisions  apply :  see 
Co3e,  1899,  sec.  1198. 


*For  laws  holding  trust  companies  liable  for  the  transfer  tax  upon 
making  a  transfer  of  securities,  deposits,  or  assets  of  a  decedent, 
see  Laws,  1896,  c.  908  as  amended  by  Laws,  1906,  c.  368. 

Also  see  Laws,  1905,  c.  241,  as  amended  by  Laws,  1906,  c.  414, 
under  which  trust  companies  are  required  to  pay  a  tax  on  transfers 
of  stook  at  the  rate  of  2c  on  8100. 


THE  BASIS  OF  TAXATION  17 

Ohio.  Taxation  the  same  as  for  banks.  For  tax 
provisions  see  Const.  1851,  art.  12,  sees.  2,  3;  Ann.  St. 
1906,  sees.  2762-9. 

Oklahoma.  Corporation  laws  apply.  For  tax  pro- 
visions see  Rev.  &  Ann.  St.  1903,  sees.  5913,  5915, 
5928-3L 

Oregon.  Corporation  laws  apply.  For  tax  pro- 
sions  see  Ann.  Codes  &  St.  1902,  sees.  3044,  3049, 
3055- 

Pennsylvania.  Corporation  tax  provisions  apply. 
See  Pub.  Laws,  1885,  p.  193  ;  Pub.  Laws,  1889,  p.  420 
as  amended  by  Pub.  Laws,  1891,  p.  229;  Pub.  Laws, 
1893,  p.  353  and  p.  417;  Pub.  Laws,  1897,  p.  292; 
Pub.  Laws,  1899,  p.  261.  Also  see  Brightly's  Dig.  of 
Laws,  1903,  p.  829. 

Rhode  Island.  Gen.  Laws,  1896,  c.  29,  sec.  4;  c. 
45,  sees,  i,  10;  c.  46,  sees.  11-12.  The  state  tax  is 
40^  per  $100  of  deposits.  After  deducting  value  of 
real  estate,  shares  are  taxed  to  owner  at  residence  by 
local  assessors. 

South  Carolina.  Taxation  the  same  as  for  banks. 
For  tax  provisions  see  Code,  1902,  sees.  313-24. 

South  Dakota.  Corporation  laws  apply.  For  tax 
provisions  see  Const.  1889,  art.  n,  sees.  2-4:  Pol. 
Co3e,  1903,  sees.  2053-55,  2O57-59>  2O79- 


Tennessee.     Taxation  the  same  as  for  banks.     For 
tax  provisions  see  Code,  1896,  sees.  790-2. 


18  THE  BASIS  OF  TAXATION 

Texas.  Taxation  the  same  as  for  banks.  J7or  tax 
provisions  see  Civ.  St.  1897,  arts.  5061-4,  5077-80, 
5084,  5118,  5243  i-j;  Supp.  1904,  art.  5049,  Annota- 
tions; Supp.  1906,  arts.  5243  i-j. 

Utah.  Taxation  the  same  as  for  banks.  For  tax 
provisions  see  Const.  1895,  art.  13,  sees.  2-3;  Rev,  St. 
1898.  sees.  2507—9. 

Vermont.  St.  1894,  sees.  368-71 ;  sec.  583  as 
amended  b>  Laws,  1896,  no.  18;  and  Laws,  1902,  no. 
20,  sec.  40.  Every  trust  company  or  savings  bank 
and  trust  company  incorporated  by  the  state  and  doing 
business  therein,  is  required  to  pay  a  state  tax  assessed 
at  the  rate  of  n>  of  i%  annually,  upon  the  average 
amount  of  its  deposits  including  money  or  securities 
received  as  trustee  under  order  of  court  or  otherwise, 
after  deducting  therefrom  the  average  amount  not 
exceeding  10%  of  its  assets  invested  in  U.  S.  govern- 
ment bonds,  and  also  the  amount,  if  any,  of  individual 
deposits  in  excess  of  $2.000  each,  listed  to  the  deposi- 
tors in  towns  of  this  state  wherein  such  depositors  re- 
side. No  other  tax  is  to  be  assessed  against  deposits 
or  "depositors  except  on  individual  deposits  exceeding 
in  the  aggregate  $2,000.  Real  estate  is  taxed  locally. 

Virginia.     Taxation  the    same   as   for  banks.  For 

tax  provisions  see  Const.  1902,  sec.  182 ;  Code,  1904, 

sec.  492C  as  amended  by  Laws,    1906,   c.   291 ;  sees. 
iO4oa— b:  Appendix,  sees.   17—22'. 

Washington.  Taxation  same  as  for  banks.  For 
tax  provisions  see  Const.  1889,  art.  7,  sec.  3 ;  Codes  & 
St.  sees.  1677-81 ;  Supp.  1903,  sec.  1677. 


THE  BASIS  OF  TAXATION  19 

West  Virginia.  Taxation  the  same  as  for  banks. 
For  tax  provisions  see  Const.  1872,  art.  10,  sec.  i ; 
Code,  1899,  c.  29,  as  amended  by  Laws,  1904,  c.  4, 
sees.  55d  and  C,  79,  83 ;  by  Laws,  1905,  c.  35,  sees. 
55d  and  k,  79 ;  and  by  c.  38. 

Wisconsin.  Rev.  St.  1898,  sec.  1039,  and  sec.  1222k 
as  amended  by  Laws,  1905,  c.  442.  Requires  payment 
of  a  license  fee  of  $500  annually,  also  a  tax  of  3%  on 
the  net  income.  This  license  together  with  the  per- 
centage on  net  income  is  in  lieu  of  all  other  taxes  ex- 
cept the  tax  on  real  estate,  which  is  assessed  locally. 

Wyoming.  Taxation  the  same  as  for  banks.  For 
tax  provisions  see  Rev.  St.  1899,  sees.  1774,  3128. 


A     000  949  847     8 


